A Social Capital Perspective on Exploitation and Exploration

This paper applies a social capital perspective to study how business units use an individual’s social capital to explore their environment and exploit resources available from individual networks. We explore this matter inductively by analysing the development and exploitation of social capital at the business unit level in a leading global construction company, collecting data through 33 in-depth interviews. Our findings show how an individual’s distinct types of social network connections can provide business units with possibilities for exploitation and exploration activities. We also note the importance of a supportive organisational context that allows firms to reap the benefits of their employees’ social capital. Consequently, the study deepens our understanding of exploration and exploitation at both the individual and business unit levels.